Hampton Roads January 2024 – Key Take-Aways
TAMARA ROADFUSS – Government Solutions – GUEST SPEAKER
• The past had private workspaces for employees. A lot more segregated.
• Now we are moving to a more open environment.
• The current thinking focuses a little more on comfort for the employee. Open working spaces.
• Work environment is designed to support people, the flow of information, and promote creativity, and company culture.
• The pandemic has shifted the traditional working office structure.
• We want people to love coming to work.
• Today’s employees want purpose, development, coaching, ongoing conversations, promotion of strengths, and life balance.
o Because of this, the workplace is evolving.
• Today’s employee post-pandemic wants to feel safe and comfortable at work. Employers are focusing on design and ergonomics to achieve this.
• Over the last 5 years, we have realized we can do many jobs from many locations. Home, Starbucks, satellite spaces, with the office operating as the central hub.
• People want to see outside. Biophilia is becoming more popular which is bringing the outside indoors. Very popular in healthcare.
• Biophilia is focused on having windows, plants, and other elements that bring the outside in without having to go outside.
• Common areas are a big design feature in spaces. People desire spaces that allow them to step away from work while at work.
KEITH SLATTUM – Dollar Bank
• GDP released and it seems to be pretty strong. This brings the question of will the FED drop rates as the economy seems strong on the surface.
• The economy is great, and inflation is down, but prices are still high.
• Rent in this market is up 25% over the past three years.
• Wages are up, however the price for goods and rent is still up.
• Everyone is convinced the FED is going to drop rates, the question is how far and how many times.
• Projects are being placed on hold, waiting for rate drops.
• Supply Chain issues continue to exist.
• If your household is making under 100k, you are feeling the blow of inflation.
• When it comes to real estate we were in a place where as long as you had it you were fine. We are now in a space where you have to be smart about the real estate you have and seek to acquire.
PATRICK GILL – Colliers
• It has been difficult for the past 18 months in investment property sales.
• All sectors are feeling the pain of increased construction costs, lending uncertainty, and increased borrowing costs.
• Multi-family is beginning to pull back. Deals are being put on hold because of construction costs.
DREW GOWEN – ECS
• A lot of developments that were start-and-stop last quarter are in motion now, especially larger developments.
• Walmart’s equipment drone towers are in motion. Allows Walmart to deliver goods to your doorstep via drone.
• Harbor Park infrastructure development is underway.
• Norfolk Casino is being greenlit.
• Large corporations or government projects seem to be the norm of the deals coming in.
MIKE MOORE – London & Norfolk
• 10% – 15% increases on insurance coverage for coastal properties.
• Storms, and an increase in weather events cause prices to go up.
• Increased construction cost means increased repair costs, causing rates to go up as well.
• Prices are up and deductibles are up across the board.
• Some policies are up 100%.
• Carriers are pulling out completely from Florida and California, and even some of our local coastal areas.
CHRIS AMBROSIO – Woods Rogers & Vandeventer Black
• Insurance now in a lot of deals is the biggest component because of the cost, insurance used to be an afterthought.
• Transactional volume in the legal world is down. We would love to work on investment deals, however, the pipeline is much slower than it was a year ago.
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